2000 (2) TMI 280 - AT - Central Excise

Summary

Issues:
Classification of the product 'Amberone' under sub-heading 2914.90 or 3302.90 of the Central Excise Tariff Act.

Analysis:
The appeal filed by Revenue questioned the classification of 'Amberone' manufactured by M/s. Camphor Allied Products Ltd. under sub-heading 2914.90 as per the Commissioner (Appeals) or under sub-heading 3302.90 as claimed by Revenue. The Revenue argued based on test reports showing the nature of the product as a mixture of odoriferous substances. They contended that the product is a precursor for the perfumery industry, used in cosmetics and toiletries, making it appropriately classifiable under Chapter 33 of the Tariff. Reference was made to Note 7 of Chapter 33 regarding odoriferous substances. However, the Respondents argued that 'Amberone' is a single compound, a sesquiterpene Methyl-Ketone, with a specific chemical formula and structure. They emphasized that the product is not a mixture of odoriferous substances but a single compound, challenging the classification under Heading 33.02. The Respondents provided detailed chemical composition information and a research paper supporting their claim.

The Tribunal considered the submissions from both sides and analyzed the rival Tariff Headings for classification. The Chief Chemist's report indicated that the product is a mixture of ketone function organic compounds. The Appellants maintained that 'Amberone' is a single chemical compound, not a mixture of odoriferous substances. The Tribunal observed that Heading 33.02 covers perfume bases consisting of mixtures of essential oils and fixatives, not ready for use until after the addition of alcohol. The Revenue failed to provide evidence supporting that the product is a mixture of odoriferous substances as required for classification under Heading 33.02. The Chief Chemist's report contradicted the Chemical Examiner's findings, confirming the product as a mixture of ketone function organic compounds. Consequently, the Tribunal found no reason to overturn the Commissioner (Appeals) decision and rejected the Revenue's appeal, affirming the classification of 'Amberone' under sub-heading 2914.90 of the Central Excise Tariff Act.

This detailed analysis of the judgment highlights the key arguments presented by both parties, the chemical composition of the product in question, and the interpretation of relevant Tariff Headings for classification, leading to the final decision by the Tribunal.